News Intel CEO Gelsinger Addresses GPU Shortage: We Are On It

[Admin]

Pat Gelsinger tells GPU-hungry PC gamers and enthusiasts that Intel will ride to the rescue this year – but is it talk, and do his plans add up?

Intel CEO Gelsinger Addresses GPU Shortage: We Are On It : Read more

 

[Howardohyea]

well, I'm still curious about the exact launch date. Arc for all we know can miss the 22H1 launch window altogether, and there's sources say H1 2022.

But then, it might be mobile first, then desktop

 

[InvalidError]

No matter how many Arcs Intel has on launch day, the same thing will happen to them as anything with usable performance: sold-out within minutes from launch as long as the price is in line with MH/s.

On the plus side, eBay GPU prices are down ~10% and more places have them in stock more often. Willingness to pay exorbitant prices is slowly fading.

 

[peachpuff]

I was hoping they'd start fabbing ampere gpus...

 

[daworstplaya]

Is it just me or was the tone of this article very negative and pessimistic?

 

[zipspyder]

Scalpers all over the world cried out in wonderous joy.....

 

[InvalidError]

Is it just me or was the tone of this article very negative and pessimistic?

As long as PoW crypto is hogging every GPU it possibly can, there are no reasons to expect GPU shortages to end. Until there is definitive light at the end of that tunnel, skepticism is fully warranted.

 

[digitalgriffin]

Pat Gelsinger tells GPU-hungry PC gamers and enthusiasts that Intel will ride to the rescue this year – but is it talk, and do his plans add up?

Intel CEO Gelsinger Addresses GPU Shortage: We Are On It : Read more

If Intel is their own distributor and aib then they control 100% of the profit. No need to share profits with greedy AIBs and they will make more $ per chipset mm than Nvidia and AMD.

 

[watzupken]

I liked the way Pat said it, “We are on it”. The truth is, we won’t want to miss out selling GPUs 2x over their MSRP.

 

[InvalidError]

If Intel is their own distributor and aib then they control 100% of the profit. No need to share profits with greedy AIBs and they will make more $ per chipset mm than Nvidia and AMD.

Only problem with that is that being your own AiB also means you have to take on all of the end-user support and RMA burden too. That is why most parts manufacturers greatly favor selling in bulk to OEMs and distributors over selling direct to consumers. That frees them of most front-line costs and logistics.

 

[LolaGT]

I seem to recall more GPUs were produced this last year than ever(Maybe I heard it wrong). It is more of a demand than a shortage. (semantics, I know)
If Intel ships out twice as much silicon as Nvidia and they are swallowed up and none of us regular folks notice any difference it doesn't really matter.
The only real impact is Intel laughing all the way to the bank.

 

[InvalidError]

I seem to recall more GPUs were produced this last year than ever(Maybe I heard it wrong). It is more of a demand than a shortage. (semantics, I know)

Nvidia's sales were up while AMD's sales were down. With both being perpetually sold-out most of the time, the only reason why AMD's sales would go down is if they cannot get more wafers out of TSMC. Since Intel's GPUs will be made by TSMC as well, I wouldn't place too much faith into Intel magically avoiding the same supply problems AMD has seemingly run into.

 

[jkflipflop98]

Nvidia's sales were up while AMD's sales were down. With both being perpetually sold-out most of the time, the only reason why AMD's sales would go down is if they cannot get more wafers out of TSMC. Since Intel's GPUs will be made by TSMC as well, I wouldn't place too much faith into Intel magically avoiding the same supply problems AMD has seemingly run into.

You forgot one important variable here. Intel has a lot more money to throw at the problem.

Intel is on a roll right now. Pat has everyone rowing in the same direction. It's going to be a tough road for TSMC in the future once Intel jumps into their foundry business with more capacity and a more advanced process.

 

[TerryLaze]

Nvidia's sales were up while AMD's sales were down. With both being perpetually sold-out most of the time, the only reason why AMD's sales would go down is if they cannot get more wafers out of TSMC. Since Intel's GPUs will be made by TSMC as well, I wouldn't place too much faith into Intel magically avoiding the same supply problems AMD has seemingly run into.

If this is still current then intel is going to use tsmc only for the gaming GPUs and everything else is going to use intel 10nm while amd uses tsmc for everything GPU and CPU so there is a huge difference there.
On the other hand intel needs all the 10nm for their CPUs as well so who knows.
https://www.anandtech.com/show/1597...tecture-deep-dive-building-up-from-the-bottom

 

[spongiemaster]

Nvidia's sales were up while AMD's sales were down. With both being perpetually sold-out most of the time, the only reason why AMD's sales would go down is if they cannot get more wafers out of TSMC.

Or because AMD chose to shift wafers to more profitable chips. There are plenty of AMD GPU's available for all models on Newegg. Almost all of them are at 2x-3x MSRP. People on this board have reported the same thing at their local Microcenter. Plenty of GPU's at 2x msrp. AMD GPU's have reached retail prices that no one wants to buy and are too high to scalp either, so they are collecting dust on store shelves. The only reason major retailers would have plenty of stock of GPU's in this market sitting around at so high a price, is because that's what they need to sell them at to make any profit. It seems pretty clear that AMD has significantly jacked up prices on their GPU's in order to make them profitable enough to keep producing in this chip shortage market. Even so, they have still lowered production because CPU's are far more profitable.

 

[digitalgriffin]

Only problem with that is that being your own AiB also means you have to take on all of the end-user support and RMA burden too. That is why most parts manufacturers greatly favor selling in bulk to OEMs and distributors over selling direct to consumers. That frees them of most front-line costs and logistics.

ATi and nVidia back in the day were their own AIB. But they discovered they could sell a lot more IF there was more distribution channels and variety of designs.

Today there is zero risk to the AIB as they sell out everything. You can make a really healthy profit margin as an AIB. Record earnings prove this. However if the market turns south then there's a greater risk. Intel could sell boards at zero profit on the AIB side as they have their own plants. Makers like evga ASRock gigabyte xfx are loathe to do this ever. They only take a wash when their purchase agreements were too high.

 

[InvalidError]

You forgot one important variable here. Intel has a lot more money to throw at the problem.

Not going to help all that much when you need 30-40 scanners to fully equip a chip fabrication line and ASML only produces ~55 EUV scanners per year. That is one heck of a huge bottleneck for the entier chip fab expansion business.

 

[Co BIY]

GPU shortage is holding back CPU sales (also MB chipsets, Wifi chips, networking chips) and so Intel has double the incentive to get them out in the market.

 

[hotaru251]

Willingness to pay exorbitant prices is slowly fading.

tbh I expect Nvidia to go nuts on MSRP of its 4000 series gpu's due to what ppl would pay now.

 

[InvalidError]

tbh I expect Nvidia to go nuts on MSRP of its 4000 series gpu's due to what ppl would pay now.

At the end of the day, that is for the market to decide. If the market for $2000 GPUs dies off, Nvidia will be wasting their time trying to market $3000 models. Same way we ended up with $120 8GB RX580s with triple game bundle thanks to AMD ramping up production during the first crypto gold-rusn and the entire channel getting stuck with possibly millions of new-in-box cards competing with millions of used mining cards.

 

[hotaru251]

If the market for $2000 GPUs dies off, Nvidia will be wasting their time trying to market $3000 models.

not really.

nvidia could keep raising price AND sell them so long as AMD and intel follow along with the prices. (as there IS no other option and they know it)

and wit hthe increasing memory and stuff its going to keep raising even on bottom line.

 

[InvalidError]

nvidia could keep raising price AND sell them so long as AMD and intel follow along with the prices. (as there IS no other option and they know it)

Raising prices only works when there is no competition. If crypto-mining crashes, there will be millions of retired mining GPUs flooding the market giving people who refuse to pay $400+ for a GPU plenty of options.

 

[hotaru251]

Raising prices only works when there is no competition. If crypto-mining crashes, there will be millions of retired mining GPUs flooding the market giving people who refuse to pay $400+ for a GPU plenty of options.

assuming it does doesnt mean the prices crash.

If the cost of only produced gpu's stays high then 2nd hand will still sell high (just not as high) as its still cheaper than new and ppl NEED them which make ppl pay w/e for them as the current situation shows.

it should lower but no reason for them to ever be as "cheap" as 3000 msrp goign forward.

 

[InvalidError]

assuming it does doesnt mean the prices crash.

Millions of used GPUs from retiring crypto farms will crash used prices. Crypto farming organizations with over 500k GPUs each don't have the patience to sell GPUs one by one to get the highest price possible. They sell in bulk to resellers at no-questions-asked prices to clear their inventory and let other people deal with testing, refurbish, repackage, list, sell, ship cards and handle post-sales problems. Then you have dozens of resellers attempting to get rid of their 1000 GPUs lootboxes from crypto farms.

The last time this happened, used GPU prices crashed until the current component shortage situation forced people to gobble it all up - you could get new-in-box 8GB RX580s for ~$120 until that point and used ones for even cheaper. AMD even had to slap a game bundle on top to get inventory to move, reducing the effective price to less than $80 if you were going to buy any of the bundled games for $40.

 

[HC1Gunner]

Pat Gelsinger tells GPU-hungry PC gamers and enthusiasts that Intel will ride to the rescue this year – but is it talk, and do his plans add up?

Intel CEO Gelsinger Addresses GPU Shortage: We Are On It : Read more

I can just see a repeat of the past (2) years.

Until online retailers (they really don't care) make Bot purchases impossible, I just see a repeat.

1. Bots used to buy up retail, then cards end up on auctions sites a 2x, 3x, and 4x prices.
2. Crypto Mining is in a downward trend, but when it goes up again, cards will bought up by large crypto facilities.

Once again, at home User / Gamer ends up with no stock.